UNIVERSAL REGISTRATION DOCUMENT 2023

1 OVERVIEW OF THE GROUP Key figures

1.3.2 ALTERNATIVE PERFORMANCE INDICATORS (API)

1.3.2.2 Reconciliations The reconciliation of economic operating income and the non ‑ life combined ratio with the line of the financial statements of the corresponding period or its subtotal or the nearest total is presented in the tables below. The combined ratio is the sum of the all ‑ years net loss experience and the rate of operating costs. The all ‑ years net loss experience is the ratio between the gross reinsurance insurance expenses for all years (including technical and non ‑ allowable costs), to which the reinsurance balance is added, and insurance revenues (gross reinsurance). This indicator is calculated on the scope of contracts evaluated in PAA in IFRS 17. The rate of operating costs is the ratio of technical and non ‑ allowable expenses to gross reinsurance insurance revenues (on the PAA model alone in IFRS 17).

1.3.2.1 Definitions Economic operating income equals net income adjusted for realised capital gains and losses, long ‑ term impairment provision allocations and write ‑ backs, and unrealised capital gains and losses on financial assets measured at fair value for the P&C, Health & Protection, financial and holding businesses (all such items are net of corporate income tax). Also adjusted are non ‑ recurring items net of corporate income tax, impairment of goodwill (net of corporate income tax), and external financing expenses. The economic operating income and the non ‑ life combined ratio are alternative performance indicators (“API”) in the light of the ESMA guidelines and the AMF position published in 2015. These alternative performance indicators are used by the Group to analyse its operating trends, financial performance, and financial position and to provide investors with additional information considered useful and relevant to the Group’s results.

2023 2022 pro forma

2022

2021

(in millions of euros)

Economic operating income

627

306

349

461

(1)

Net capital gains realised

(43)

96

315

135

(1)

Allocation to reserves for long ‑ term impairment

(60)

(14)

(29)

(20)

(1)

Gains or losses on financial assets recognised at fair value

84

(237)

(43)

58

Other expenses and income

(38)

(49)

(51)

(89)

Financing expenses

(54)

(54)

(54)

(53)

Net income from discontinued business activities

(6)

(34)

(34)

0

Goodwill impairment

0

0

0

0

Net income

510

13

454

493

Amounts net of profit sharing (in 2021 and 2022) and corporate tax. (1)

2023 2022 pro forma

2022

2021

All ‑ years net loss experience

68.8%

72.5%

71.9%

70.5%

Operating expense ratio

28.0%

27.9%

27.5%

27.8%

(2)

Combined ratio

96.8% 100.4% 99.4% 98.3%

(2) IFRS 17combined ratio for the PAA model in 2023 and in 2022 pro forma.

9

Universal Registration Document 2023 GROUPAMA ASSURANCES MUTUELLES